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Due to new requirements of European Union law (Regulation No. 909/2014 on improving the settlement of securities in the European Union and CSDs), investors are able to keep securities belonging to them in an owner securities account opened in the investor’s name at the central securities depository or in the omnibus account opened in the name of the intermediary (Danske Bank) at the central securities depository.

Below is a description of the types of securities accounts.

Owner account

An owner account is registered in the name of customer and is used for holding of securities for a single customer of the bank. Assets held in owner accounts are protected on the highest level in case of the bank’s insolvency as the securities on the account belong to the customer and shall not be included in the bankruptcy estate of the bank, nor shall the claims of the creditors of the bank be satisfied on account of such assets.As the owner accounts are registered in the name of the customer, information about beneficial ownership is more transparent and accurate.

Information of the investors of registered securities is directly available for issuers. Access to up-to-date information of end investors is helpful for the issuers in regard to their investor relations activities, general meetings and voting.

In Danske Bank customers can open owner accounts in Nasdaq CSD for Lithuanian and Latvian securities.

For safekeeping and transaction fees, there is no difference between owner and omnibus account opened in Nasdaq CSD. For further information, please find information from our pricelist.

Omnibus account

Omnibus account is registered in the name of the bank and is used for holding of securities of a single customer or multiple customers of the bank (i.e. excluding bank’s own holdings). For omnibus account an internal register of beneficial owners is held by bank.With omnibus account, information of the investors is not directly available for issuers and the customer is not able to exercise its rights and obligations as an owner of securities personally. Issuers may ask the bank to disclose information about end investors. This is needed for example before general meetings or corporate actions.Assets held in omnibus account are protected in case of the bank’s insolvency as the ownership over the assets as well as assets acquired on account of such assets, held on omnibus account belong to the respective customers and shall not be included in the bankruptcy estate of the bank, nor shall the claims of the creditors of the bank be satisfied on account of such assets. Deriving from different insolvency legislation in some jurisdictions, transferring the assets to another service provider, disposing of the securities or exercising other rights might be restricted.

Opening and closing of Danske Bank’s internal securities account is free of charge.

For safekeeping and transaction fees, there is no difference between owner and omnibus account opened in Nasdaq CSD. For further information, please find information from our pricelist.

The Danske Bank Group has introduced a new policy for Socially Responsible Investments – SRI. The policy is to ensure that the Group does not invest customers’ assets in companies that violate internationally recognised standards for human rights, arms, working conditions, environment and anti-corruption.

The policy applies to the Group’s own products, where the Group manages investments on behalf of customers.

“We have decided to introduce the SRI policy to make sure that customers can feel comfortable in placing their investments with the Group,” says Niels-Ulrik Mousten, Senior Executive Vice President, Danske Capital.

The decision to introduce an SRI policy is closely coupled with the Group’s conviction that appropriate behaviour is a precondition for long-term value creation in a company.
“Therefore, the SRI policy does not conflict with the Group’s objective of generating the best possible returns for our customers,” says Niels-Ulrik Mousten.

Dialogue with companies

If a company is accused of involvement in a sustained and severe violation of the guidelines, Ethix will investigate the accusations. Through the entire process Ethix seeks a dialogue with the company and other relevant parties. The dialogue entails an opportunity to hear the companies’ own description of the case and investigate whether the company is taking initiatives to stop the violation and thus prevent any reoccurrence.

Within the Danske Bank Group an SRI Board has been established. Its members are the CEO’s of Danske Capital, Danica Pension and Danske Invest together with representatives from Corporate Responsibility and the Group’s SRI function. The SRI Board receives the results of Ethix’ analyses and decides whether the securities from a given company are to be excluded or whether the dialogue with the company is to be continued.

“The dialogue is to clarify whether the company is planning to change its behaviour in respect of the case in question. Depending on the outcome of the dialogue, we decide whether we will sell or retain the investments in the company,” says Niels-Ulrik Mousten.

System of insurance of deposits and liabilities to investors

All deposits and assets intended for purchasing financial instruments and held at Danske Bank A/S Latvia Branch are subject to compulsory insurance in The Guarantee Fund for Depositors and Investors (Danish Kingdom).

What is the Guarantee Fund for Depositors and Investors?The Guarantee Fund for Depositors and Investors (hereinafter – the fund) means the body established by the act of Parliament of the Kingdom of Denmark. Within certain limits, the fund reimburses losses incurred by clients of Danish banks, mortgage banks or investment companies, where a bank, a mortgage bank or an investment company is subject to compulsorily dissolution. This protection also applies to all clients of Danske Bank A/S Lithuania Branch (hereinafter – the bank) (private individuals and legal entities).

SecuritiesThe fund also compensates the loss incurred by an investor if the investor's securities managed, or administered by the bank, or held in an investor securities account are not returned by the bank. The amount of compensation is EUR 20,000 per investor.

How is the compensation calculated?FundsThe amount of loans and other financial obligations to the bank is deducted from the total sum of cash deposits held by the client at the bank and the balance held in his/her bank accounts. The client is paid a positive balance of funds up to EUR 100,000.

SecuritiesGenerally, suspension of the bank's payments or compulsorily dissolution has no effect on securities, because even in such cases investors usually recover their securities.However, sometimes, securities cannot be returned to the investor. In such cases, the fund reimburses the loss because securities were not recovered in the amount of up to EUR 20,000 per investor less any debts to the bank. However, the compensation cannot exceed the market value of outstanding securities.

How can I apply for compensation?Not later than five business days after commencement of reconstruction or bankruptcy proceedings, the Guarantee Fund will send you a statement of your total balance together with guidelines on how to proceed (the guidelines will also be available at the fund's website).

When you have received the statement, your new bank will help you file a claim with the Guarantee Fund. The Guarantee Fund will pay the deposits to your new bank within seven business days.

An English translation of the Danish Act that regulates the guaranteeing of deposits and securities can be found on the website of the Danish Financial Supervisory Authority that can be accessed at www.finanstilsynet.dk or www.dfsa.dk.

Disclosure

The value of financial instruments may increase as well as decrease. You assume all risks related to investing in financial instruments. Investing in financial instruments may be profitable as well as unprofitable, so you may not get any financial benefits or even loose a part or whole invested amount. Past performance is not a reliable guide to future performance. Financial instruments in foreign markets are also affected by currency fluctuations, which may determine the value of them either positively or negatively. This information does not constitute investment advice, an offer or a solicitation of an offer to buy, sell, swap or hold a specific financial instrument. Before investing in a specific financial instrument, we recommend that you familiarise yourself with the prospectus, key investor information document and rules, which you can find at www.danskeinvest.lt.

Any information on the website about investing in financial instruments is promotional information. The information is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be unlawful and, specifically, are not intended for distribution to, or use by, any "US Person” within the meaning of the United States Securities Act of 1933, as amended and the United States Securities Exchange Act of 1934, as amended.

You are always welcome to contact us if you have questions about how we process personal data.
You can contact our Data Protection Function, Holmens Kanal 2-12, 1092 København K, Denmark, or by email: DPOfunction@danskebank.com